Hexing(603556) 国盛证券·2024-05-06 01:03Investment Rating - The report maintains a "Buy" rating for the company [10][18]. Core Insights - The company reported a revenue of 4.2 billion yuan in 2023, representing a year-on-year increase of 26.91%, and a net profit of 982 million yuan, up 47.90% year-on-year [8]. - In Q4 2023, the company achieved a revenue of 1.328 billion yuan, a 43.84% increase year-on-year, and a net profit of 314 million yuan, which is a 61.17% increase year-on-year, exceeding expectations [8]. - The company's gross margin improved to 41.90% in 2023, up 3.67 percentage points year-on-year, with Q4 2023 gross margin at 45.73% [3][9]. - The overseas revenue for Q1 2024 is expected to be approximately 6.86 billion yuan, a 38% increase year-on-year, while domestic revenue is projected to be around 2.16 billion yuan, a decrease of 27% [2]. Financial Performance - The company’s operating cash flow for 2023 was 1.101 billion yuan, a 63.03% increase year-on-year, indicating high-quality earnings [17]. - The forecast for net profit for 2024-2026 is 1.153 billion yuan, 1.328 billion yuan, and 1.516 billion yuan, reflecting growth rates of 17.3%, 15.2%, and 14.2% respectively [10]. - The company’s revenue is projected to grow from 5.276 billion yuan in 2024 to 7.212 billion yuan in 2026, with year-on-year growth rates of 25.6% and 19.4% respectively [12]. Market Dynamics - The report highlights a strong demand for overseas electric meters, with overseas revenue reaching 2.561 billion yuan in 2023, a 41.72% increase year-on-year, while domestic revenue was 1.034 billion yuan, a decrease of 5.47% [16]. - The company’s revenue from new energy products surged to 163 million yuan, a 283.50% increase year-on-year, with significant contributions from overseas markets [16].